flexiblefullpage - default
Currently Reading

Lumber Prices Fell to New 2022 Low Following Goldman Sachs Housing Forecast

billboard - default
Building Materials

Lumber Prices Fell to New 2022 Low Following Goldman Sachs Housing Forecast

Lumber prices fell 4% on Tuesday after Goldman Sachs released its updated forecast for home sales in 2022

August 31, 2022
Stacks of lumber inside warehouse
Image: Stock.adobe.com

Lumber prices fell 4% to a new 2022 low on Tuesday as higher mortgage rates speed along a housing downturn. The in-demand building commodity fell to $465 per thousand board feet on Tuesday following the Goldman Sachs forecast for declining home sales throughout the remainder of 2022. The bank expects existing home sales to fall 12% in August, and it also predicted that the current market slowdown will persist into 2023, Insider reports.

Despite jumping to a record high of $1,733 per thousand board feet in 2021, lumber prices have historically traded between a range of $200 to $600 per thousand board feet, and the current $465 rate could fall further if the housing market returns to its pre-pandemic state. 

While the decline in lumber may be seen by some as a positive sign that inflation is continuing to cool, it is also indicative of a housing market slowdown that may last longer than expected.

And Goldman Sachs expects just that, as it argued in a Tuesday note the home sales are set to decline further after already cooling significantly since the Fed began its interest rate hikes, which sent mortgage rates soaring above 5%.

Read more

Related Stories

Building Materials

Lumber Prices Fall to Lowest Level Since 2020

Lumber prices have plummeted to their lowest level since June 2020 as builder confidence falls for the 11th consecutive month

Building Materials

Prices for Lumber, Steel Mill Products Fall For Second Consecutive Month

Building materials prices fell for the second consecutive month in October since peaking during the first and second quarters of the year

Building Materials

Building Materials Prices Fell for the Third Consecutive Month in September

Prices for building materials like softwood lumber and steel mill products are posting consecutive monthly declines, while prices for ready-mix concrete are on the rise

boombox1 -
native1 - default
halfpage2 -

More in Category

native2 - default
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.

Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.